New York Employers:
Earlier this month, the New York Legislature passed the “NY No Severance Ultimatums Act.” While not yet sent to the Governor for signature, once signed into law it would take immediate effect.
Key takeaway from the pending legislation: Employers will need to give all employees (regardless of age), 21 days to consider a separation and release agreement and a 7-day revocation period before their agreement becomes effective or enforceable.
The new law would also require separation agreements to convey that employees have the right to consult with an attorney regarding the agreement.
Non-compliance with these requirements would render the separation agreement void and unenforceable. Prepare to update separation agreement templates to be ready to comply with the new law. We will let you know when the Governor has signed it.
You can read the full text here: NY State Senate Bill 2025-S372A